If the Queensland government reduced its payroll tax by 2 percentage points, this will likely cause

Question

Quizplus · Accepted Answer

A reduction in payroll taxes will increase the net wage received by workers, making it more attractive for firms to hire more workers. This will lead to an increase in the quantity of workers employed. Additionally, a reduction in payroll tax will decrease the cost of labor for employers, which will lead to lower prices for consumers. This will decrease deadweight loss as the market becomes more efficient. Therefore, the correct answer is C - an increase in the quantity of workers employed and a decrease in deadweight loss.

If the Queensland Government Reduced Its Payroll Tax by 2